Many years ago, manufacturers learned that assembly lines can often be used to increase production rates and decrease per-unit production costs. Assembly lines are typically used in a build-to-stock production model, where large quantities of identical products are manufactured in anticipation of forecasted demand.
In many markets, however, predicting customer demand is risky, at best. For example, in the market for computer systems and related items, technological improvements are realized so frequently and component prices change so rapidly that it is difficult to accurately predict how large the market for any particular product will ultimately be. As a result, when manufacturers in industries like information technology utilize the build-to-stock model, those manufacturers frequently find themselves with stocks of manufactured goods that are difficult or impossible to market at a profit.
A contrasting model of production that helps manufacturers avoid the stale-inventory problem is the build-to-order model. According to that model, each product is assembled only after receiving a customer order for that product. In response to receiving the customer order, the manufacturer builds the product according to the order.
For purposes of this document, a product that is manufactured “according to” a customer order is a product that is (1) manufactured in response to a specific order from a customer and (2) manufactured to have the features specified in that order. With regard to shipping, items that are shipped “according to” a customer order are items that are shipped in such a manner that all of the items arrive at the location specified in the order within the time specified in the order.
Build-to-order manufacturing systems may be used to give customers more options with regard to product configuration and to address the stale inventory problem. However, build-to-order manufacturing systems have generally been less efficient than build-to-stock manufacturing systems, with regard to the amount of time and labor required to fill orders. Production costs are therefore typically greater in build-to-order manufacturing systems. In addition, in both types of manufacturing systems, production costs are affected by the space requirements.
In highly competitive markets, any significant reduction in production costs that does not adversely affect product quality can be an important improvement. As recognized by the present disclosure, a need therefore exists for a way to reduce space, time, and/or labor requirements in build-to-order manufacturing facilities.